- Lower production during monsoon leads to m-o-m drop in dispatches
- Iron ore rakes to Chhattisgarh-based units drop 12% m-o-m in Jul’26
The National Mineral Development Corporation (NMDC), India’s largest iron ore miner, dispatched 518 rakes from its Chhattisgarh mines in July 2026, equivalent to 1.99 million tonnes (mnt) of iron ore. This marks an 8% drop from 563 rakes (2.16 mnt) in June, as per BigMint data. However, y-o-y, dispatches in July surged by 22% compared with 422 rakes in July 2025. NMDC’s rake movements to both state-based buyers and buyers in neighbouring regions fell, weighing on overall figures.
The m-o-m drop in dispatches can be attributed to lower production during the monsoon. NMDC’s iron ore production declined sharply by 21% m-o-m to 4.06 mnt in July 2026, down from 5.15 mnt in June. Additionally, during the monsoon, buyers prefer sourcing pellets to lumps due to the latter’s high moisture absorption capacity and to help improve operational efficiency. However, y-o-y, production increased 31%, leading to the 22% y-o-y increase in dispatches.
Overall, iron ore sales also weakened during the month, falling 15% m-o-m to 3.40 mnt in July from 3.98 mnt in June. On a y-o-y basis, however, sales were marginally lower by 2% against 3.46 mnt recorded in July 2025.
Notably, these volumes are for rake movements within Chhattisgarh and to other state-based units but exclude supply to AM/NS India through the slurry pipeline. Each rake carries around 3,850 t of iron ore.
Sourcing by Chhattisgarh-based units falls
NMDC dispatched 162 (0.62 mnt) iron ore rakes to Chhattisgarh-based units in July, a drop of 12.4% as against 185 (0.71 mnt) in June. Supplies to its own Nagarnar-based facility decreased, with 97 rakes in July against 110 rakes in June 2026. Moreover, dispatches to other state-based plants declined 13% m-o-m.
Moreover, in Raipur DR CLO based sponge iron prices declined by INR 500/t m-o-m to INR 28,000/t against INR 28,500/t in June 2026; primarily due to slower demand in the finished and semi-finished steel segment.
Sourcing by units outside Chhattisgarh drops by over 5% m-o-m
Overall, NMDC’s iron ore movements to plants outside Chhattisgarh dropped by 5.8% to 356 rakes in July against 378 in the previous month.
Intake by Rashtriya Ispat Nigam Limited (RINL), the leading buyer, edged up by 5% to 142 rakes against 135 in the previous month, with the steelmaker procuring material from other sources as well. Demand remained healthy due to aggressive export deals for billet lined up for dispatch. Their pellet sourcing is currently reduced and thus took material actively from NMDC.
Iron ore rakes to JSW Steel’s Dolvi plant in June remained stable at 81 rakes against 83 rakes in the previous month. JSW Steel made some bookings from the Odisha and Maharashtra merchant markets, which led to the drop in sourcing from NMDC as the plant sourced from alternative sources.
Dispatches to KIOCL softened to 58 rakes in July against 68 rakes, primarily due to expectations of a slowdown in the pellet export market.
Dispatches to Jindal Steel Odisha Limited (JSOL) fell to nil this month against merely 3 rakes in June. As per sources, following NMDC’s iron ore price hike in June, JSOL sourced raw materials from Odisha at more competitive prices. The company was operating at lower capacities and had ample pellet inventories, given earlier bulk procurement from local plants in Odisha during the month.
Outlook
NMDC’s iron ore rake movements in August are expected to soften, with buyers showing lower preference for lumps due to the monsoon. Reduced mine production are also likely to weigh on rake movements.
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